ChatGPT parent OpenAI eyes further financial backing from Microsoft Corp
OpenAI's chief Sam Altman said his company's partnership with Microsoft's chief executive Satya Nadella was "working really well" and that he expected "to raise a lot more over time" from the tech giant among other investors to keep up with the punishing costs of building more sophisticated AI models, Financial Times cites from an interview.
In 2023, Microsoft invested $10 billion in OpenAI under a "multiyear" agreement that valued the company at $29 billion.
OpenAI's CEO, Sam Altman, expressed hope for continued investment from Microsoft as the company progresses towards building AGI, acknowledging the significant costs associated with training such advanced systems.
Despite good revenue growth this year, OpenAI remains unprofitable, primarily due to these training expenses. However, the partnership with Microsoft is structured to ensure mutual profitability.
OpenAI recently unveiled new tools and updates to GPT-4, aiming to create a revenue-sharing model akin to Apple Inc's
Altman clarified that OpenAI's various offerings are merely conduits to their core product of "intelligence, magic intelligence in the sky."
To expand its enterprise business, OpenAI has recruited Brad Lightcap as COO. Altman focused on research for superintelligence and the necessary computing power.
OpenAI is also enhancing its autonomous agents capable of complex tasks and is developing GPT-5, which will train on a mix of public and proprietary data sets.
Despite the current reliance on Nvidia's H100 chips, which faced a supply crunch, OpenAI anticipates a better supply next year. Competitors like Alphabet Inc
OpenAI, already a leader in generative AI with ChatGPT, continues to innovate in LLMs, which Altman believes are crucial for AGI development, a belief he feels competitors have overlooked. He emphasizes the need for a breakthrough akin to Newton's calculus invention to create new knowledge for AGI.
OpenAI looks to generate over $1 billion in revenue over the next 12 months from selling AI software and computing capacity.
